Hold on to your pants, folks! The government is about to drop some hot statistics on inflation, spending, and wages right before the Federal Reserve decides what to do with interest rates next week. Get ready for some serious data porn.

According to our trusty forecasters, the Labor Department will reveal that wages and salaries increased by a whopping 4.6 percent in the first quarter compared to last year. Slow your roll, though. While this might sound great on the surface, policymakers are concerned that we’re growing too fast, like a bunch of rebellious teenagers. Apparently, quick pay gains could lead to even more inflation – like we need more of that.

If you’re hoping the Commerce Department’s data will bring you some relief, think again. Inflation eased up a bit in March, but it’s still uncomfortably high. Sigh. On top of that, consumer spending is probably going to take a huge hit, if not flat out tank. It’s like getting a combo of bad news and extra bad news, with a side of disappointment.

Investors, get ready for some serious legwork. You’re going to be combing through these stats for hints about where the economy is headed and how the Fed is going to react. Brace yourselves, though. While most people expect the central bank to give interest rates a little boost on Wednesday, what they say about the rest of 2023 is still up in the air. It’s like trying to read the tea leaves, only with more math and fewer cookies.

All in all, it’s going to be a nail-biting week as we wait to see what the Fed does with rates. But don’t worry, folks. We’ll get through this together, even if our wallets take the hit. On the bright side, we’ll have plenty of data to whine about for a good long while.

Serious News: nytimes